The Securities and Exchange Commission (SEC) has received an application for an order under sections of the Investment Company Act of 1940. The application seeks to allow certain business development companies and investment funds to make investments together, which would normally be restricted by law. The goal is to let these companies co-invest in small and medium-sized businesses, maximizing investment opportunities without unfair advantages. The SEC will issue the order unless a hearing is requested by March 22, 2021.
Simple Explanation
The SEC is looking at a request to let certain companies work together to put their money into small businesses, kind of like sharing toys instead of playing alone. They'll say yes unless someone speaks up by March 22, 2021.